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Posted by
Two Blokes Jun 18 -
Filed in
Stock
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3 views
PIMCO Dynamic Income Fund has outperformed the S&P 500 in a risk-off environment, but my outlook is now more constructive for equities, making me less bullish on PDI's outperformance prospects. But PDI has favorable tailwinds in non-agency residential MBS, as low housing inventories offset low affordability, leading to higher prices and demand for mortgage credit. PDI also has meaningful exposure to high-yield credit. And this market is seeing higher yields without higher credit risk, at near all-time-low default rates.
